Government splits Chairman & MD post in PSU banks and names chiefs for 4 PSU banks
Government has decided to separate the post of Chairman and Managing Director (MD) and Chief Executive Officer (CEO) in public sector banks.
With this decision government is breaking the tradition of having the heads of state-run banks act as both chairman and managing director.
As per the Finance Ministry, the Chairman in public sector banks other than State Bank of India (SBI) will be a part- time board member. He will preside over the board meetings and will not be an Executive Chairman.
This means that for the first time, PSU banks will have a non-Executive Chairman, giving operational responsibility to Managing Director and Chief Executive Officer (CEO).
In pursuance of the decision, the government has appointed four Managing Directors and CEOs of following 4 PSU banks
- Koteeswaran was named as MD and CEO of Indian Overseas Bank.
- Srinivas was named as MD and CEO of United Bank of India.
- Animesh Chauhan was named MD and CEO of Oriental Bank of Commerce.
- Kishore Sansi was named MD and CEO of Vijaya Bank.
Above 4 MD’s and CEO’s will have tenure of 3 years or till the date of superannuation, whichever is earlier. These appointments were made based on the recommendations of Appointments Board chaired by the Reserve Bank of India (RBI) Governor.
Government also has decided to go for a fresh selection procedure for the post of Chairman and MD and CEO in Bank of Baroda, Punjab National Bank and Canara Bank, which are ‘A’ category large banks.
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Month: Current Affairs - January, 2015